In today’s briefing:
- Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding
Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding
- In my previous analysis, I found that firms with high frequency of share repurchase cancellations increased their market capitalization during the relevant period (12/2021-1/2022).
- Even though the short-term share price performances of companies that announced share repurchases were mixed, the share prices of companies with track record of several share repurchases have risen.
- It takes certain amount of time for investors to understand the track record and the capital allocation policy is consistent with the goal of increasing corporate value over the-long run.
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